Casinos & Hotels
Las Vegas Sands Doesn't Deliver on High Expectations
Published:
Last Updated:
Higher operating income was driven by Sands’ Macao operations. In fact, Macao gets the credit for well over two-thirds of the company’s revenues. Las Vegas operations contributed slightly less than 10% to total revenues in the second quarter.
The Sands did not offer guidance, but the consensus estimates call for third quarter EPS of $0.95 on revenues of $3.95 billion. For the full year analysts estimate EPS of $3.88 on revenues of $16.02 billion.
The company’s CEO said:
We are driving our strong financial performance through the focused and consistent execution of our global growth strategy, which continues to harness the power of our convention-based Integrated Resort business model. We are confident that the continued execution of this strategy will extend our position as the global leader in Integrated Resort development and operation. … We remain confident that our market-leading Cotai Strip properties, which will be complemented by the Parisian Macao, which is targeted to open in late 2015, will meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding platform for growth in the years ahead.
Shares are up about 35% in the past 12 months, but down nearly 7% year to date. Since posting the 52-week high in early March, shares are down more than 15%. Today’s clear miss won’t help the stock, but it is worth noting that the consensus EPS estimate was unchanged from three months ago. The bar was set high, and the company couldn’t make the jump.
Shares were down nearly 2% in after-hours trading, at $72.46, in a 52-week range of $52.90 to $88.28. The consensus target price for the shares was around $89.25 before the report.
ALSO READ: J.P. Morgan’s Top 4 Gaming Stocks to Buy as China Growth Reignites
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
